EXHIBIT 12
FLUOR CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollar Amounts in Thousands)
Nine | ||||||||||||||||||||||||||
Months | ||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||
Sept 30 | ||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2003 | |||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 193,838 | $ | 88,674 | $ | 164,287 | $ | 185,320 | $ | 260,524 | $ | 191,807 | ||||||||||||||
Add (subtract) | ||||||||||||||||||||||||||
Equity in earnings from less than 50% owned persons, net of distributions | (8,090 | ) | (5,776 | ) | 220 | 6,408 | (3,529 | ) | (149 | ) | ||||||||||||||||
Fixed charges | 41,295 | 44,631 | 53,090 | 50,502 | 35,399 | 27,851 | ||||||||||||||||||||
Total | $ | 227,043 | $ | 127,529 | $ | 217,597 | $ | 242,230 | $ | 292,394 | $ | 219,509 | ||||||||||||||
Fixed charges | ||||||||||||||||||||||||||
Interest expense | $ | 13,120 | $ | 18,972 | $ | 26,315 | $ | 25,011 | $ | 8,925 | $ | 7,995 | ||||||||||||||
Portion of rental expense representative of interest factor | 28,175 | 25,659 | 26,775 | 25,491 | 26,474 | 19,856 | ||||||||||||||||||||
Total fixed charges (1) | $ | 41,295 | $ | 44,631 | $ | 53,090 | $ | 50,502 | $ | 35,399 | $ | 27,851 | ||||||||||||||
Ratio of earnings to fixed charges (1) | 5.50 | 2.86 | 4.10 | 4.80 | 8.26 | 7.88 | ||||||||||||||||||||
(1) | For purposes of computing the ratio of earnings to fixed charges, “earnings” consist of earnings from continuing operations before provision for income taxes plus fixed charges less equity in earnings from less than 50% owned persons, net of distributions. “Fixed charges” consist of interest and approximately one-third of rental expense. |